Liberal Party puts blowtorch to ICAC MPs

Sean Nicholls, Kate McClymont

The NSW Liberals intend to apply the blowtorch to three MPs hauled before the Independent Commission Against Corruption inquiry into political donations, signalling that they will be expelled by the end of November that if they don't resign from the party.

Londonderry MP Bart Bassett, Swansea MP Garry Edwards and Port Stephens MP Craig Baumann resigned from the parliamentary Liberal party and moved to the cross bench after evidence at the ICAC, but all three remain members of the broader party organisation.

Special powers: If the three MPs refuse to resign from the Liberal Party, state director Tony Nutt is expected to expel them before the end of the month. Photo: Jessica Hromas

If the three MPs refuse to resign from the Liberal party, state director Tony Nutt is expected to expel them before the end of November using powers granted to him during an election campaign period under the Liberal party constitution.

Delegates to the party's state council on Saturday were briefed on a resolution by the state executive stating that the Liberals will not support endorsement of any candidate for next year's state election if ICAC makes an adverse finding against them.

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The resolution also noted that Mr Nutt has the power to expel any members, including candidates and sitting MPs, from the Liberal Party if he forms the view their actions are likely to have broken state or federal law.

Mr Baumann joined the crossbench in September after the ICAC heard that he took $79,684 in secret donations from developers Jeff McCloy and Hilton Grugeon before the 2007 election. He hid the payments by issuing "sham" invoices.

Although this occurred before the 2010 ban on developer donations, Mr Baumann, the former mayor of Port Stephens, agreed the reason for hiding their identity was that both developers could have profited from a proposed development at Wallalong, near Maitland.

On Sunday Mr Baumann said he had "no desire" to step aside and that no one from head office had suggested he do so. "No one's rung me and they've all got my number," he said.

The draft findings of counsel assisting Geoffrey Watson, SC, were received by Mr Baumann on 10 October. Mr Baumann's legal team sent off a 20-page response on Friday.

Mr Baumann also foreshadowed taking action in the Supreme Court to challenge any corruption finding. ICAC's final report is not due until late January.

Mr Bassett stepped aside after allegations were made at ICAC that a company associated with coal mogul Nathan Tinkler made an illegal donation of $18,000 for Mr Bassett's campaign for the seat of Londonderry in December 2010.

As Hawkesbury mayor, Mr Bassett voted for a new residential land strategy in North Richmond favouring Mr Tinkler's company in May 2011.

Mr Edwards stood aside after property developer Jeff McCloy admitting he gave cash in an envelope to Mr Edwards before the 2011 election. Mr Bassett and Mr Edwards did not respond to a request for comment.

The party is believed to have held off on sending a signal to the MPs before now because of the threat they might quit the parliament and trigger by-elections.

However, if they were to quit parliament now it is likely that the Speaker, Shelley Hancock, would decide by-elections should not be held this close to the state election in March.

Two other former Liberals hauled before the ICAC inquiry, former police minister Mike Gallacher and upper house MP Marie Ficarra, are not facing the same ultimatum because the party feels the evidence against them at ICAC is not as clear cut.

Ms Ficarra has been allowed to seek preselection for an "at large" position on the Liberal party's upper house ticket. However, she is unlikely to be selected.